The Nikkei 225 Index (NI225) gained 9.4% this week. This is the second-highest gain posted by the Tokyo Stock exchange since December 2009.
The US Federal Reserve announced earlier that they were contemplating a huge rescue package. The relief plan aims at going through any possible ways to help provide small businesses and households with sufficient liquidity to survive through these difficult times.
Banking sector shines for Nikkei
The Banking sector was the top gainer after it went up by 3.6%.
The top-performing stocks in the Banking sector were:
- Mitsubishi UFJ Financial Group Inc (MUFG) went up by 4.41%.
- Mizuho Financial Group Inc gained 3.59% until the day’s close.
- Banking major Softbank Group Corp. went up almost 4% over its previous day’s close.
Nikkei recovered after initial losses
The trading day started with declines for Tokyo’s stock markets. However, the NI225 index bounced back sharply. It is one of the most massive reversals for the index.
However, FMCG, as well as some Retail companies, suffered setbacks amid decreasing sales. This was because of the imposition of lockdowns due to the Coronavirus pandemic.
There were growing concerns over the deal regarding the production cut of Crude oil between Russia and Saudi Arabia. This came as a shock to several oil companies. Index Corp., a giant in the Oil and Gas industry, declined 3.1% as a result of this uncertainty.
Japan is also contemplating several relief measures of its own. Analysts predict that the next week could be a lot dependant on any important news that comes up during the weekend.